donaldson supplier quality manual supplier quality manual donaldson supplier quality manual (dsqm)...

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Donaldson Supplier Quality Manual

(DSQM)

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Table of Contents

1.0 Introduction

1.1 Donaldson Overview 1.2 Quality Commitment 1.3 Purpose 1.4 Scope 1.5 Quality Requirements and Expectations 1.6 Supplier Code of Conduct

2.0 Quality Management Requirements 2.1 Contact Information 2.2 Certification 2.3 Non-Conforming Products and Materials 2.4 Sub Supplier Requirements

3.0 Supplier Assessment 4.0 Supplier Development 5.0 Risk Focus 6.0 Advanced Quality Planning 7.0 Supplier Production Part Approval Process (SPPAP)

7.1 Submission/Retention Requirements 7.2 Retention/Submission Requirements Table 7.3 Notification of Changes

8.0 Supplier Held Tooling 9.0 Pricing Policy 10.0 Quoting 11.0 Forms and Instructions 12.0 References 13.0 Glossary

Frequently used Acronyms DCI – Donaldson Company Inc. DBV – Donaldson Buys Value Program DQSM – Donaldson Supplier Quality Manual DPPM – Defective Parts Per Million RFQ – Request for Quote PO – Purchase order SPPAP – Supplier Production Part Approval Process PSW – Part Submission Warrant 8D – 8 Step Problem Solving Approach AIAG – Automotive Industry Action Group APQP – Advanced Product Quality Planning and Control Plan CPK – Continuous Process Capability PPK – Process Potential Capability

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1.0 Introduction Donaldson Company Inc. (DCI) is a global manufacturer and distributor of filtration equipment into a diverse range of industries and applications. Founded in 1915 by Frank Donaldson, the company initially provided air filtration equipment to the agricultural market and, over the next 100 years, the company has expanded and diversified their product portfolio and geographic locations. Today, DCI’s global operations are based on discrete business units and have manufacturing facilities around the world that ensure meeting of statutory and regulatory requirements globally and locally. Our Vision: To Lead the world in filtration solutions

Our Mission: Provide our Customers with solutions that improve people's lives, equipment performance and protect the environment

Our Values: Every action we take must be driven by our three key values: Integrity, respect and commitment

1.1 Donaldson Overview

With the portfolio of filtration products manufactured by DCI, a number of business units have been developed to meet the requirements of the industries and specific applications identified. The main business units within DCI are outlined below, this is a summary only and not intended to be a complete list. Business Unit Services provided Engine Division Design and manufacture of filtration equipment for air and liquids in relation to on and off

road vehicles Gas Turbine Systems Division

Design, manufacture, installation and service of filtration equipment for gas turbines, engines, compressors, generators etc.

Industrial Air Filtration Division

Design, development, manufacture and service of industrial filtration applications such as shot blasting, food, pharmaceuticals, etc.

Compressed Air and Process Division

Design and manufacture of filtration equipment for compressed air, process gasses & liquids

Integrated Venting Solutions

Design and manufacture of venting filters, for example used in sensors, headlights, etc.

Compressor Design and manufacture of filtration equipment that are assembled onto compressors Semicon and Imaging Filters for the Semicon and Imaging industry Membranes Rolled goods of e-PTFE membrane media for a variety of industrial applications Aerospace & Defense Design and manufacture of filtration equipment for the Aerospace and Defense industries

Disk Drive Design and manufacturing of filtration media and components for disk drives and other electronic equipment

DCI complies with its customer’s contractual quality system requirements including industry specific or customer specific quality system requirements. The current revisions of IATF 16949, ISO 9001 and AS9100 are the quality system requirements adopted by Donaldson Buys Value Program (DBV) and the Donaldson Supplier Quality Manual (DSQM).

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1.2 Quality Commitment

1.3 Purpose The purpose of the DSQM is to communicate Donaldson’s Quality requirements to suppliers. We strive to ensure that we are setting clear expectations and flowing down our customer requirements to our supply base. This step is critical for Donaldson to continue to exceed customer expectations and maintain our Quality Commitment. This manual covers the most important quality related interactions between DCI and its suppliers as well as where to find additional information on tasks, documents, responsibilities and performance metrics.

1.4 Scope This manual applies to all suppliers of parts, materials, tooling and services to all Donaldson North America locations. This manual in conjunction with Donaldson Buys Value provides the primary quality and service requirements.

1.5 Quality Requirements and Expectations Suppliers doing business with Donaldson shall have long term relationships in mind. Our customers expect this and we strive for it in our everyday business dealings. Obtaining the best “value” for the products purchased will always be our goal. DCI defines value as Quality, Service, and Cost. Quality must focus on not exceeding 50 DPPM. Delivery must focus on 100% to the on-time delivery requirement.

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Donaldson Buys Value (DBV) Program is the comprehensive framework for the DCI/supplier relationship. A copy of the DBV manual can be found at: https://www.donaldson.com/en/supplier/dbv/index.html DCI expects our suppliers to provide materials, parts, assemblies, and services that meet our engineering requirements with minimum variation. In addition, they must be delivered on-time and be cost effective. Parts must be properly identified by part number and date of manufacture for traceability and shipped to us on ISPM15 compliant pallets. Please refer to the Donaldson Website for more information on shipping requirements: https://www.donaldson.com/en/supplier/shipping/index.html

1.6 Supplier Code of Conduct Donaldson and its global affiliates share common Core Values of Integrity, Respect and Commitment. In keeping with our Core Values, we are committed to applying high standards of ethics and business conduct in every country in which we operate and within every business relationship we have worldwide to include our business relationships with suppliers. Just as we expect our employees to demonstrate our Core Values, we expect our suppliers to conduct all business activities within the guidelines of Donaldson’s Supplier Code of Conduct at all times. These obligations are in addition to supplier obligations contained in purchase orders or agreements with Donaldson. The Supplier Code of Conduct is in no way intended to conflict with or modify the terms and conditions of any existing contract. In the event of a conflict, suppliers must first adhere to applicable laws and regulations, then the contract terms, followed by the supplier code of conduct. A link to the current supplier Code of Conduct can be found in the bottom right corner of our supplier website: https://www.donaldson.com/en/supplier/index.html

2.0 Quality Management Requirements 2.1 Contact Information Suppliers are responsible for providing DCI with contact information for their Quality Department. This contact information will be used to communicate SQM updates, customer specific requirements, non-conformances and coordination of instructions and access to our SPPAP management System. These quality contacts are normally active participants in the DBV program.

2.2 Certification

The materials, parts, assemblies and services our suppliers provide to DCI have a direct impact on the final quality of our products and services. Therefore, DCI requires its suppliers to maintain a quality management system based on the current revision of ISO 9001, IATF16949 or AS9100. Corporate Procurement can help identify which business unit a supplier’s product is used in. The table below references Quality Standards by Business unit: Standard Business Unit IATF16949 Engine and IVS AS9100 Aerospace and Defense ISO9001 All other applicable business units

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Evidence of a fully-functioning quality management system is produced by a 3rd party Registrar. It is the responsibility of each supplier to provide DCI with an up-to-date copy of their applicable certificates. Should the re-issuing of a certificate be delayed, the supplier must notify DCI supplier quality BEFORE the current certificate expires and provide the new re-certification timeline and target date. The supplier shall then send a copy of the certificate upon successful recertification. Certification status is a key component to doing business with DCI and can significantly impact your supplier standing should you not obtain or lose a certification. Exemption: Certain suppliers may be exempt from the certification requirement depending upon the nature of the material, parts, services or business unit within DCI that they serve. This exempt status is determined by DCI supplier Quality and Procurement by evaluating risk. Examples of a supplier who may be considered exempt from registration requirements are: • Low volume suppliers of custom parts • Suppliers of non-production related material or services

2.3 Non-Conforming Products and Materials When a Nonconformance is found, DCI will issue a non-conformance report (NCR), along with a request for corrective action. The corrective action request will specify one of two formats: fast-track corrective action or a full 8D (as described below). NCR reports will be issued by DCI plant quality and sent to the supplier via email for processing/completion. Fast-track corrective action: This is a short version of a corrective action designed to be used for non-critical issues such as one time labeling errors, or ship damage complaints. These requests require an emailed response that provides DCI with root cause investigation information and corrective action plan within 15 days. 8D Requirements: For the majority of non-conformances an 8 step problem solving approach (8D) will be requested. When an 8D is required the “DCI 8D” form will be sent along with the NCR to the supplier. These requests require proof of the use of either a 5why or fishbone diagram (included on standard form) to help determine and document the root cause. The 8 Steps of an 8D corrective action are:

1. Establish the team 2. Describe the problem 3. Develop interim containment actions 4. Define and verify root cause 5. Choose and verify permanent corrective action 6. Implement and validate permanent corrective action 7. Choose actions to prevent recurrence 8. Approval and Closure – recognize the team!

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Timing requirements for completing 8D’s are: • Containment actions- through Step 3 are required within 24 hours • Root Cause and corrective action steps 4-5 are required within 15 days of original request • Steps 6-8 are required to be closed within 60 days and should include implementation and verification

It is within the discretion of the initiator of the 8D to grant extensions or shorten these dates depending on the circumstances. Costs associated with defective or non-conforming products or materials that include dispositions of product, sorting costs, and rework or inspection costs will be charged to the supplier along with a $75 administration fee per NCR. Should a DCI Plant production line be interrupted as a result of defective or non-conforming products or late deliveries from a supplier, DCI reserves the right to charge the associated cost to the supplier. Those line-stop charges may include, but are not limited to: machine or line set up, parts or material inspection and sorting, material handling, product expediting, DCI production and customer downtime. The amount claimed may vary by the type of operation, production line and of the number of people involved.

2.4 Sub Supplier Requirements We encourage our suppliers to have sub-supplier relationships that maintain a management system in accordance with the current revision of ISO 9001 as a minimum. DCI reserves the right to directly assess a Tier 2 supplier that has a significant impact on final quality at DCI. Tier 1 suppliers will be held responsible for the products and services they provide including items supplied to them from Tier 2 suppliers. We expect our suppliers to ensure their sub-suppliers: • Have a quality focused approach to ensure that measures are taken to minimize the probability of

defective products occurring • Have processes in place to identify and quarantine defects early in their processes • Maintain data and documents to ensure and prove if needed that products have been manufactured in

accordance with all relevant laws and safety standards, to include Production Part Approval Process documentation

• Have processes in place to communicate any product, process or supply chain change prior to implementation

• Implement risk based thinking into their processes and quality management systems • Obtain or work towards certification to ISO9001, IATF16949 or AS9100 as applicable

3.0 Supplier Assessment Corporate Procurement and Supplier Quality will identify the status of the supplier’s business operating system using assessment tools that may include questionnaires, surveys, on-site visits, and audits. The assessment identifies the supplier’s capability to support DCI by having documented effective systems in place to meet or exceed this standard. Supplier assessment is accomplished by a self-completed questionnaire and/or by an on-site quality system survey/assessment conducted by DCI Supplier Quality or Procurement. Corporate Procurement is responsible for the assessment of new suppliers in terms of their financial strength and business management.

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If successful, a supplier is first identified as an “Approved supplier”. Strategic suppliers are identified and developed from the pool of Approved suppliers by the Donaldson Supply Management Team. The Donaldson Supply Management Team typically consists of representatives from plant and corporate staff departments in Procurement, Quality and other functions as required and is responsible to assess, select, develop, retain or replace the strategic supply base. We intend to update the quality system assessment of strategic suppliers on a biannual basis. All updates and changes will be immediately communicated to suppliers.

4.0 Supplier Development DCI will develop its supply base using the current revision of ISO9001 as the fundamental quality system requirement. DBVprovides measurements and a structure for identifying actions to improve supplier quality and service performance. A Donaldson Team will schedule regular meetings (a minimum of once per year) with strategic suppliers to review current performance and discuss if necessary any improvement opportunities. For more information on DBV please refer to manual located at: https://www.donaldson.com/en/supplier/dbv/index.html Each supplier is expected to have a management system in place that addresses the following elements of their business. The following elements below will be reviewed and considered when identifying improvement opportunities. 1. Statutory & regulatory requirements 2. Quality management system 3. Management responsibility 4. Resource management 5. Product realization 6. Measurement, analysis and improvement 7. Environmental management 8. Code of Conduct

5.0 Risk Focus Suppliers are responsible for evaluating and minimizing all possible risks that have been identified as early as possible. Suppliers are required to apply all appropriate preventative quality planning methods during development phases of both products and processes which include at a minimum: feasibility analysis, reliability studies and risk analysis. Suppliers should apply this same risk based thinking to current product, process design and improvement as well and are strongly urged to ensure their sub-suppliers have also appropriately included risk based thinking into their systems.

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6.0 Advanced Product Quality Planning Advanced Product Quality Planning (APQP) is achieved by a cross-functional team that includes supplier representative(s), as appropriate. Planning occurs in phases requiring outputs (deliverables) from each phase. These outputs are verified and agreed to by management before closing out a phase and continuing the work-in-progress in the next phase. As indicated by a request/notification from Corporate Procurement, a supplier may participate in DCI’s APQP. Formal notice may be via Request for Quote (RFQ), Purchase Order (PO), or other written method (e-mail). For more complex projects, the supplier may be required to work with CAE/CAD systems, and be required to supply preliminary drawings, documents, and prototypes. Suppliers receive engineering drawings from the assigned corporate category manager with each RFQ. Each RFQ submission will be revision specific indicating the suppliers understanding of the requirements of the print. Suppliers are responsible for ensuring that they understand all requirements of the drawing and specification requirements. Any required clarification is to be resolved including documentation prior to finalizing tooling or commencing production. Table1 below illustrates the possible output (deliverables) which may result for a given project.

Table 1 PLANNING PRODUCT DESIGN &

DEVELOPMENT PROCESS DESIGN & DEVELOPMENT

PRODUCT & PROCESS VALIDATION

FEEDBACK, ASSESSMENT & CORR. ACTION

Design Goals DFMEA

Packaging Standards Production Trial Run Reduced Variation

Reliability & Quality Goals

Design for Manufacturability and Assembly

Product/Process Quality System Review

Measurement Systems Evaluation

Improved Customer Satisfaction

Prelim BOM Design Verification

Process Flow Chart

Prelim Process Capability Study

Improved Delivery & Service

Prelim Process Flow Chart

Design Reviews

Floor Plan Layout Production Part Approval PPVP

Effective use of Lessons Learned and Best Practices

Prelim Special Product & Process Characteristics

Prototype Control Plan Characteristics Matrix Production Validation Testing

Product Assurance Plan

Engineering Drawings

PFMEA

Packaging Evaluation

Management Support

Engineering Specifications

Pre-Launch Control Plan

Production Control Plan

Program Timing

Material Specifications

Process Instructions Quality Planning Signoff & Management Support

Resource Plan

Drawing & Specification Changes

Measurement Systems Analysis Plan

New Equipment, Tooling, and Facilities Requirements

Prelim Process Capability Study Plan

Special Product & Process Characteristics

Packaging Specifications

Gage/Test Equip Requirements

Management Support

Team Feasibility Commitment & Management Support

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7.0 Supplier Production Part Approval Process (SPPAP) The Supplier Production Part Approval Process (SPPAP) assures purchased materials, parts, and assemblies meet DCI specified requirements by determining: 1) All DCI engineering drawing and specification requirements are properly understood by the supplier. 2) The supplier’s manufacturing process has the capability to produce product meeting those requirements during an actual production run at the quoted production rates, using production tooling, gauging, processes, materials, operators, environment, and process settings, from parts that are taken from a significant production run. Significant production run requires a minimum of 30 pcs. An SPPAP is specific to a part number/revision level. SPPAP is patterned after the Production Part Approval Process (PPAP) available from AIAG at www.aiag.org. Below is a high level overview of the SPPAP Process Picture 1

Corporate Procurement and Supplier Quality will administer the SPPAP request via our supplier management software called “SMS”. Each supplier will be set up with one administrator per supplier site. The administrator is then responsible to add other users as required. Please contact DCI supplier quality at [email protected] to request registration if required. Use the below link to log into your SMS Account and view SPPAP requests: https://donaldson.sppap.ipi-solutions.co.uk/Account/Login

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An SPPAP is required to be completed by the supplier for the following reasons:

• a new or revised part • parts from a new or revised tool • parts from a changed supplier process or a change in material • parts that have been produced by tools or equipment that have been transferred to a new location • as determined by DCI (re-release of inactive part, correction of a discrepancy, etc.)

Exception: At this time, SPPAP may not be required for bulk materials such as chemicals (e.g. urethane) and steel (e.g. rolls, sheets, or structural steel as purchased by GTS and IAF). It is also not required for packing materials or electronic goods such as fans, motors, control panels, and circuit boards. This expectation does not exclude the confirmation of conformity to Donaldson requirements. It is mandatory that all the parts/materials meet Donaldson specifications. The confirmation of conformity could be requested or retained on file by the supplier. All other direct material/inventory purchased products, including purchased Finished Goods, require an SPPAP. Note: Since most products are not subject to further inspection after they leave the supplier, the supplier is responsible to assure the conformance of the product to drawings and specifications. Parts sent to any Donaldson location prior to SPPAP Approval must be marked accordingly (i.e. part number, revision, and non-approved parts).

7.1 Submission/Retention Requirements The inclusion of various deliverables in the SPPAP is determined by the Category Manager in consultation with the cross-functional design team as appropriate. The requirements are communicated to the supplier via the RFQ and PO. The submission schedule for final approval is communicated via the PO when the engineering drawings are available and released. The submission level is determined considering the following factors. The default submission level is Level 3.

• Part criticality • Supplier expertise with a specific commodity • Experience with prior part submission

Catalogue parts (e.g. bolts and nuts) are identified and/or ordered by functional specifications or by recognized industry standard. NOTE:

1. Preliminary process capability studies are intended to be performed on a production run producing at least 300 units. Both CPKs and PPKs must be reported for all significant/critical characteristics. CPK’s for those characteristics must be greater than or equal to 1.33 and PPK’s must be greater than or equal to 1.67. (DCI critical characteristics are identified by a black diamond on the print.)

2. Any specific DCI requirement must be met See next page for SPPAP Submission Level Guidelines Table 2

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SPPAP Submission Level Guidelines Table 2

SPPAP Level

Submittals

Initiating Event (Examples)

Level 3 (Default)

Submit all items as indicated in the Retention/Submission Requirements Table.

• New product or Supplier • POM Change • Revised product for which changes affect form, fit,

function, reliability or performance

Level 1

Submit PSW and Appearance Approval Report (if required) only. All other documents are updated and retained by the Supplier.

• Non-product-impacting revisions (process/specification changes not impacting product/material)/part-print agreement

• Directed-buy parts

Level 2

Submit PSW and all items as indicated in the Retention/Submission Requirements Table. All other documents are updated and retained by the Supplier.

• Revised product/tooling • Movement/transfer of tooling/equipment • Qualification of additional tooling/equipment • Product produced after tooling has been inactive for

volume production for 12 months or more • Use of new construction or material than what used in

the previously approved part *Control Plan, Dimensional report, and Capability Study and GR&R report if revised characteristic is a Significant Characteristic

Level 4

Submit PSW and all other required documents as defined by Donaldson. All other documents updated and retained (as applicable) or waived.

Customizable Ideal for Catalog items/Commercial off-the-shelf (COTS) parts in which the supplier needs to submit a signed warrant, material cert (if applicable) and copy of catalog specifications.

Level 5

Submit Part Submission Warrant and product samples. All required documents updated and retained at supplier location for review on-site as necessary.

Applicable for suppliers with proprietary processes and documents (e.g. PFMEA, Control Plan, etc.).

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7.2 Retention/Submission Requirements Table

Table 3

Retention/Submission Requirements Table

Requirement Submission Level

Level 1 Level 2 Level 3 (Default)

Level 4 Level 5

1 Design Record (2D Drawing) R S S * R

2 Engineering Change Documents (if any) such as CQP/ECO/ECP

R S S * R

3 Donaldson Engineering Approval if required.

R R S * R

4 DFMEA N/A N/A N/A N/A R

5 Process Flow Diagram R R S * R

6 PFMEA R R S * R

7 Control Plan R R S * R

8 Measurement Systems Analysis (GR&R)

R R S * R

9 Dimensional Report R S S * R

10 Material/Performance/Functional Test Results and Catalog/Spec Sheet detail.

R S S S R

11 Initial Process Studies (Short-term Capability Study)

R R (unless revision is to Significant Characteristics)

S * R

12 Qualified Laboratory Documents (from outside facility the supplier may use).

R R S * R

13 Appearance Approval Report (rare) S S S * R

14 Sample product (1 piece from each cavity).

R S S * R

15 Master Sample R R R * R

16 Checking Aids R R R * R

17 Records of compliance with Donaldson-specific Requirements (not defined on drawing or EN).

R S S S S

18 Parts Submission Warrant (PSW) S S S S S

S = The supplier shall submit to Donaldson, and retain copy of records or documentation items at appropriate locations.

R = The supplier shall retain at appropriate locations and make available to Donaldson upon request. *= The supplier shall retain at appropriate location and submit to Donaldson upon request

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7.3 Notification of Changes A changed process is one that affects appearance, dimensional, or reliability/performance characteristics. Other changes subject to the notification requirement may include, but are not limited to, tool repairs or modifications, equipment transfers, transfers to alternate sites or sub-contractors, and material substitutions. Notify the DCI assigned corporate category manager of all process changes for a determination of acceptance or next steps prior to implementing the change.

A) All part and process changes must be officially communicated through the corporate category

manager. Use the Part, Process, and/or Point of Manufacturing Change Request Form (406.205.000-007) http://www.donaldson.com/en/supplier/forms/index.html

B) Supplier actions will take place only after formal notification and an agreement is reached on what steps are to be taken and the price impacts associated with them.

C) The supplier is obligated to inform DCI in advance of any changes to their manufacturing processes on any DCI part. Before changes can be made, the supplier must receive an agreement from DCI to the changes and the impacts associated with them.

D) In most instances, the changed part and/or process will require that the part be re-validated. Your corporate category manager will notify you of the requirements.

Any product that is controlled by the supplier shall have sufficient technical documentation to enable DCI to verify its integrity.

8.0 Supplier Held Tooling Suppliers should recommend and/or select manufacturing processes and tooling which assure that their production parts meet specified requirements. Supplier tool recommendations are solicited via RFQ by the assigned corporate category manager and are evaluated on a best overall (total part) cost considering the estimated part volume, the tool cost, and the expected tool life. Authorization for supplier held tooling is only by purchase order from the assigned Category Manager. TOOL OWNERSHIP DCI’s standard practice is to purchase and own the tools used to produce DCI proprietary parts. Parts made from DCI owned tools shall not be sold to other parties without the written approval of DCI. Terms and conditions for tools owned by DCI customers and managed by DCI will be conveyed via the PO authorizing the build or purchase of the tool. FULLFILLMENT OF TOOLING PURCHASE ORDERS DCI will provide a tool asset number (PMxxxx). This Asset number shall be permanently and legibly marked on the tool. Any additional tool identification requirements will be conveyed via the authorizing purchase order. Fulfillment of the tooling purchase order also requires approval of the supplier production part approval process (SPPAP). The SPPAP submission level will be specified in the purchase order. Fulfillments of tooling purchase orders require the completion of the Tool Data/Warranty Form and the Bailment Agreement.

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TOOL PAYMENT Tool payment will be made according to the terms stated on the tool purchase order. If progress payments are required, the supplier must invoice for the down payment and mark invoices as “down payment”. Invoices can only be issued once the milestone has been met. Early invoices may be rejected and may require a credit memo to be issued by the supplier. TOOL STORAGE Tools shall be handled and stored appropriately at all times.

TOOL MODIFICATIONS, REWORK, OR REPLACEMENT Authorization for modification or replacement is only by purchase order from the assigned corporate category manager. The performance of normal tool maintenance for typical wear items is not considered a tool modification. Normal tool maintenance is typically conducted by the supplier without a purchase order from the corporate category manager TOOL DISPOSITION Disposition of supplier held tooling is authorized only by purchase order (or letter) from the assigned corporate category manager. The supplier should make such requests to the corporate category manager.

TOOL RECORDS The supplier shall maintain a record of the tool, available to the corporate category manager upon request. The record should contain at a minimum:

Tool PM# Part number(s) produced by the tool Revision level of the part that the tool currently produces Tool description Tool condition (good/needs attention/bad) Number of cavities Date tool last used Tool Site Location Number of shots on the tool Expected remaining tool life in number of parts/shots Record of tool maintenance activities

TOOL STATUS/AUDIT A tool status report may be requested by Corporate Procurement at any time during the build and validation of the tool. Inspection or audit of the tool may be required at any time during the life of the tool.

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TOOL MAINTENANCE The supplier is responsible for the maintenance and repair of the tool during its life. The tool must be maintained and repaired to assure conforming parts for the life of the tool. If the supplier suspects that the maintenance or repair could affect appearance, dimensional, or reliability/performance characteristics of the part, notify the Category Manager for determination if re-validation of the part is required. The supplier should have formal procedures for handling, storage, and preventive maintenance. Maintenance records should record the tool PM #, maintenance date, description of work and general tool condition and be available upon request.

9.0 Pricing Policy DCI is always open to our supplier’s suggestions on ways to decrease cost. We expect that our suppliers will pursue activities that will provide a minimum of 2% of the total amount of goods sold to Donaldson in annualized cost savings. If it becomes necessary to review your prices, we have the following as a minimum requirement: • 90 days written notification of the proposed price increase • Supporting documentation, including labor, material, and overhead cost justification • Complete list of all parts affected that includes the old and new prices • Off-setting cost reduction proposals

10.0 Quoting The quoting process is an important part in decreasing our “time to market”. This “time” is continually shrinking and it is becoming necessary that DCI has the ability to quote products and projects faster. It is our goal to have suppliers who are capable of responding with their best quote in a 24 to 48 hour time frame (where applicable).

11.0 Forms and Instructions The following forms are considered “generic” and are available from several sources including AIAG at www.aiag.org (see below). Printed or electronic versions may be available by calling the corporate category manager.

Process Flow Diagram Process Failure Mode and Effects Analysis Quality/Process Control Plan Potential Process Capability Dimensional Report Material certification Donaldson specific forms for price changes or part, process and/or point of manufacture can be found at: https://www.donaldson.com/en/supplier/forms/index.html

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12.0 References Our supplier site at Donaldson.com contains information and additional resources including Aerospace and Defense Flow down requirements, our standard terms and conditions and our supplier code of conduct. Links for these can be found on the lower right hand side of the web page (as shown below). There are also links for many other topics on the left side menu. The site can be found at: https://www.donaldson.com/en/supplier/index.html

Contact Emails: Corporate supplier quality: [email protected] Corporate Procurement: [email protected] The following are available by contacting AIAG, Automotive Industry Action Group, (248) 799-4228 or at www.aiag.org :

Quality System Requirements (IATF16949) Quality System Assessment (QSA) Advanced Product Quality Planning (APQP) Measurement Systems Analysis Manual (MSA) Statistical Process Control Manual (SPC) Production Part Approval Process (PPAP) Potential Failure Mode and Effect Analysis (FMEA)

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13.0 Glossary APPROVED means that the parts and/or related documentation submitted to or reviewed by Donaldson meet all Donaldson requirements. After production validation the supplier is authorized to ship product as directed by the plant/customer. CAD/CAE MATH DATA is a form of design record by which all dimensional information necessary to define a product is conveyed electronically. When this design record is used, the supplier is responsible for obtaining a drawing to convey results of dimensional inspection. CHECKED PRINT is a production released engineering drawing with actual measurement results recorded by the supplier adjacent to each drawing dimension and other requirements. CONFORMANCE means that the material meets Donaldson specifications and requirements. CONTROL PLANS are written descriptions of the system for controlling production parts and processes. They are written by suppliers to address the important characteristics and engineering requirements of the product. Each part must have a Control Plan, but in many cases, “family” Control Plans can apply to a number of parts produced using a common process. DESIGN RECORD is the part drawings, specifications, and/or electronic (CAD) data used to convey information necessary to produce a product. FAILURE MODE AND EFFECTS ANALYSIS (FMEA) is a systematized technique which identifies and ranks the potential failure modes of a design or manufacturing process in order to prioritize improvement actions. GAGE R&R refer to the AIAG Measurement System Analysis reference manual. INTERIM APPROVAL permits shipment of products for a specified time period or quantity. MARKED PRINT is an engineering drawing modified, signed and dated by the Donaldson engineer (the engineering change number must be included). MEASUREMENT SYSTEM VARIATION STUDIES refer to the AIAG Measurement System Analysis reference manual. PROCESS is a combination of people, equipment, methods, materials, and environment that produces output - a given product or service. A process can involve any aspect of a business. PROCESS FLOW DIAGRAM depicts the flow of materials through the process, including any rework or repair operations. PRODUCTION RELEASE DRAWING is an engineering drawing signed by the engineer and released through the Donaldson system. The drawing is forwarded to the supplier via Donaldson Corporate Procurement. PRODUCTION PART VALIDATION SUBMISSIONS are based on small quantities of parts taken from a significant production run made with production tooling, processes, and cycle times. The supplier checks parts for production part validation to all engineering requirements. PRELIMINARY PROCESS CAPABILITY Studies are short-term studies conducted to obtain early information on the performance of new or revised processes relative to internal or customer requirements. In many cases, preliminary studies should be conducted at several points in the evolution of new processes (e.g. at the equipment or tooling subcontractor’s plant, after installation at the supplier’s plant). These studies should be based on as many measurements as possible. When X-Bar and R charts, at least twenty subgroups (typically three to five pieces) are required to obtain sufficient data for decision-making. When this amount of data is not available, control charts should be started with whatever data is available. (Refer to AIAG’s Fundamental Statistical Process Control reference manual.)

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QUALITY PLANNING is a structured process for defining the methods (i.e. measurements, tests) that will be used in the production of a specific product or family of products (i.e. parts, materials). Quality planning embodies the concepts of defect prevention and continuous improvement as contrasted with defect detection (see AIAG’s Advanced Product Quality Planning and Control Plan reference manual). REJECTED means that the production part submission and/or documents did not meet the customer’s requirements. The supplier must correct the production process and make a new submission. (Advise Donaldson Corporate Procurement of the date when corrected parts will be available.) Do not ship production parts until the DCI approves the corrected parts. DCI may withhold tooling payments until part approval is obtained. REPEATABILITY AND REPRODUCIBILITY, GAGE (GAGE R&R) Refer to AIAG’s Measurement System Analysis reference manual. SIGNIFICANT CHARACTERISTICS are those product features that affect subsequent operations, product function, or customer satisfaction. Significant characteristics are established by the Donaldson engineer, quality representative, and supplier personnel from a review of the Design and Process FMEAs and must be included by the supplier in the Control Plan. Any significant characteristics included in engineering requirements are provided as a starting point and do not affect the supplier’s responsibility to review all aspects of the design, manufacturing process, and customer application and to determine additional process parameters. SPECIFICATIONS are engineering requirements for judging the acceptability of a part characteristic. For the production part validation process, every feature of the product as identified by engineering specifications must be measured. Actual measurement and test results are required. Specifications should not be confused with control limits that represent “the voice of the process”. SUPPLIERS are defined as providers of production materials, or production or service parts, directly to DCI. Also included are providers of heat-treating, painting, plating or other finishing services. STATISTICAL CONTROL is the condition of a process from which all special causes of variation have been eliminated and only common causes remain. Statistical control is evidenced on a control chart by the absence of points beyond the control limits and by the absence of any non-random patterns or trends. (STATISTICAL CONTROL is a descriptive term for a STABLE PROCESS.) SUBMISSION LEVEL refers to the level of evidence required for production part submission. TOOLING MAINTENANCE is the periodic sharpening, polishing, or other servicing of a tool. This maintenance will not significantly affect the dimensions or other characteristics of the product produced by the tool (contrast with TOOLING REFURBISHMENT). TOOLING REFURBISHMENT is the major overhaul of a tool. Refurbishment can affect dimensions or other characteristics of the product produced by the tool. Production part approval submission of product made with refurbished tools is required before such product may be shipped to the customer. WARRANT is an industry-standard document required for all newly-tooled or revised products in which the supplier confirms that inspections and tests on production parts show conformance to customer requirements.

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Donaldson Company, Inc. Procurement P.O. Box 1299 Minneapolis, MN 55440-1299